The Chhattisgarh Government would auction as many as five mineral blocks in the 1st Phase of the auction of minerals as per the provisions of MMDR Act 1957 and Rules framed there under.
The Centre has informed States in regard to the blocks to be auctioned by them in various meetings and interactions with them, officials stated.
A total of 63 mineral blocks would be auctioned in 8 states including Chhattisgarh.
Notably, Coal production in Chhattisgarh stood at 115.19 million tonnes (MT) during 2014-15 ( provisional), officials stated.
This was in comparison to 110.14 million tonnes (actual) coal produced in the State during the previous year.
The State had already produced 27.857 million tonnes of coal during the period April to June 2015 (provisional), officials stated.
As per Annual Plan document 2015-16 of Union Ministry of Coal, the annual target for overall coal production for 2015-16 has been fixed at 700 million tonnes.
As action plan has also been drawn by Coal India ltd. in this regard to achieve production of 1000 Million tonnes by 2019-20, officials stated.
Notably, the Centre has signed a Memorandum of Understanding (MoU) each with the states of Odisha, Jharkhand and Chhattisgarh for critical coal connectivity projects to improve transportation of coal .
Agreement for World Bank loan of US $ 1100 million for Eastern Dedicated Freight Corridor (DFC) (Phase-2) have also been signed, they stated.
Freight train with speed of maximum 100 kms per hour will pass through Chhattisgarh in the East-West Corridor (Kolkata-Mumbai).
Chhattisgarh—a mineral rich State had 7.48 per cent share in total value of mineral production in the country during 2014-15, according to the 2014-15 annual report of the Union Ministry of Mines.
As per the report, Rajasthan had share of 11.49 per cent, Gujarat ( 8.85 per cent), Andhra Pradesh ( 8.25 per cent), Chhattisgarh ( 7.48 per cent) followed by Jharkhand ( 7.37 per cent), Odisha ( 6.38 per cent), Maharashtra ( 5.35 per cent), Madhya Pradesh ( 4.70 per cent), West Bengal ( 4.32 per cent), Assam (4.04 per cent), Karnataka (2.96 per cent) and Uttar Pradesh ( 2.72 per cent).
The remaining States and Union Territories having individual share of less than 2.5 per cent all together accounted for remaining of total value of mineral production during the year under review, the report stated.
State-wise analysis revealed that during 2014-15, the value of mineral production have shown a mixed trend as compared to the previous year.
The States which have indicated an increase in the value of mineral production are -- Tripura (14.3 per cent), Karnataka ( 1.6 per cent), Bihar (6.6 per cent), Himachal Pradesh ( 16.5 per cent), Mehgalaya ( 61.6 per cent), Uttar Pradesh ( 0.8 per cent) and Chhattisgarh ( 0.7 per cent).
During 2014-15, mineral production was reported from 33 states and union territories which is actual reporting from Mineral Conservation and Development Rules ( MCDR) and fuel minerals from 23 states and estimation of minor minerals for all the 32 states and union territories of which the bulk of value of mineral production of about 94.18 per cent was confined to 13 states ( including off shore areas) only, it stated.
Offshore areas are in leading position in terms of value of mineral production in the country and had the share of 20.27 per cent in the national output, the report stated.
Notably, the Directorate of Geology & Mining in Chhattisgarh is also in the process of carrying out iron ore exploration in the notified areas of Kanker and Narayanpur districts of Bastar division.
The exploration is being carried out in Rowghat and 10 other locations, officials stated.
Notably, Chhattisgarh had only three ‘Non Working’ iron ore mines out of 15 as on April 15, 2015 in the State.
The state-wise details of Working and Non-working mines of iron ore as on April 15, 2015 are as follows- Chhattisgarh- Working (15), Non Working (3) Andhra Pradesh Working (42), Non Working (20), Goa Non Working ( 330), Jharkhand Working (11), Non Working (46), Karnataka Working (26), Non Working (69), Madhya Pradesh Working (33), Non Working ( 3) , Maharashtra Working (14), Non Working (12),Odisha Working (37), Non Working (106), Rajasthan Working( 15) Non Working (2), Telangana Working (4), Non Working (5).
It may be recalled that the Chhattisgarh government had targetted to carry out survey and mapping for 1,000 square kms of State’s area during 2015-16 for geological exploration during the 12th five year plan ( 2012-17).
The minerals to be explored as bauxite, limestone, iron ore, coal, dolomite, manganese and granite, officials stated.
The Directorate of Geology & Mining is the State agency engaged in exploration of mineral resources as well as minerals development and regulation work in Chhattisgarh.
The Directorate has the facility of remote sensing, cartography,survey, drilling and petrological techniques for geological investigations supported by the chemical laboratory (conventional and instrumental techniques of analyses) to assess the mineral resources. The mineral exploration works are being carried out through three Regional Offices, Raipur, Bilaspur and Jagdalpur, officials stated.
The grant of mineral concession, collection of revenue and regulation of mineral concessions are being carried out through District Offices under the control of Collector, district concerned.
The Directorate also provides technical and legal advice, related with grant and regulation of mineral concession to the State Government.
Explorations had been promised for Bauxite in Dandkesra and Murdadand area of Surguja and Darai and Bhuski-Pakri/Pandripani area of Kabirdham districts (two areas) , Iron ore in notified areas of Kanker and Narayanpur districts and Pavaras and Kachhora area of Bastar district.
Moreover, explorations are being proposed for limestone in Raipur, Rajnandgaon,Janjgir-Champa and Dantewada districts, Manganese in Raipur district, Dolomite in Janjgir-Champa district, Granite in Kanker, Bastar and Narayanpur districts, Coal in Saidu area and West of Mainpat Plateau of Surguja district.
Chhattisgarh is set to earn estimated revenue of Rs51,596 crore from its five mines auctioned among 29 in the country under the provisions of Coal Mines (Special Provisions) Act, 2015 during the mining lease period, officials stated.
The specified end-users of the mines are in the non-regulated sector. The mines are Chotia, Gare Palma IV-4, Gare Palma IV-5, Gare Palma IV-7, Gare-Palma Sector-IV/8.
So far 29 coal mines have been auctioned under the provisions of Coal Mines (Special Provisions) Act, 2015 and the Rules made thereunder.
The auction process for non-regulated sector viz. Iron and Steel, Cement and Captive Power was based on forward bidding process where bidders had to submit their final price offer above the applicable floor price. In case of Power sector which is a regulated one, reverse bidding methodology was adopted where bidders had to submit bids below the applicable ceiling price, which shall be taken as fuel cost in determination of power tariff.
In addition, an estimated amount of Rs1,41,854 crores would accrue to coal bearing States from allotment of 38 coal mines to Central and State PSU’s.